Bank Of Maharashtra Car Loan Eligibility

Whenever one goes ahead to apply for a car loan, it is wise to check the car loan eligibility criteria laid out by the bank to avoid loan rejection. The car loan eligibility details of Bank of Maharashtra are:

Age

• The individual must be at least 18 years old and maximum age at maturity should not exceed 70 years.

Eligible Entities

• Permanent salaried employees of Central / State government / Corporate Salary Account Holders / Employees of PSU & Companies of repute with minimum 1 year of service in the current organization can apply for a car loan.
• Businessman/Self-Employed Persons / Independent Entrepreneurs who have regular source of income based on 2 years IT Returns are eligible to apply for the car loan.
• Farmers having minimum 5 acres of land holding engaged in production oriented agricultural activities and in other allied activities minimum land holding of 5 Acres and sufficient disposable income can apply for this loan.
• Pensioners of Central/State Government/PSU having minimum pension of Rs.25000/- per month are eligible to apply for the loan.
• Corporate clients are eligible to apply for the car loan by producing the IT returns for 2 years and proof of income through audited balance sheet.

Annual Income

• Rs. 3 lacs income in the last year and IT returns for the last 2 years is mandatory for salaried individuals.
• Rs. 4 lacs income in the last year and IT returns for the last 2 years have to be mandatorily submitted for businessmen and professionals.
• Agriculturists and allied functions have to produce ascertainable income of minimum Rs. 4 lacs.
• Corporate clients need to produce documents that show a minimum income of Rs. 4 lacs in the previous and IT returns for 2 years.
• The income of spouse, parents or siblings can be shown if there is a co-applicant to the car loan.

Security

The purchased vehicle will be hypothecated with the bank till the repayment of the loan is done completely.

Repayment

The repayment period for the car loan is a maximum of 84 months.

Documents required

• Completed application form
• Identity proof
• Address proof
• PAN Card
• Income proof
• Salaried Individuals: Last 2 years ITR, Form 16, Last 3 months salary slips, Last 6 months bank statement
• Non-salaries individuals: Last 2 years ITR, Audited Balance Sheet, Last 12 months bank statement
• Agriculturists who are not filing ITR, an income certificate authorised by Revenue Department officers needs to be submitted.
• Quotation of the vehicle intended for purchase
• Receipt of payment made to the car dealer
• Valuation certificate from the insurer in case of used vehicle not more than 3 years old

What are the factors impacting the eligibility of a car loan?

There are some factors that affect the eligibility of a car loan which has been outlined below:

Credit score –  Banks check the credit score of the applicant to understand the financial status. If the applicant has a high credit score, the car loan sanction will be done faster. If the credit score is on the lower side, the applicant will need to take some steps to improve it so that the bank will have confidence in the repayment capabilities of the individual.

Age –  The minimum age criteria for taking a loan varies from 18 to 21 years of age. Typically, the maturity age at the end of the loan is a maximum of 65 years and in some cases, 70 years.

Income level – The income of the applicant is a major factor in getting a loan from the bank. A steady flow of income instills confidence in the lender to offer financing help. Therefore, a proof of income documents needs to be submitted to the bank. There is a minimum income eligibility laid out by all banks. In case, you are not reaching that level, a co-applicant to the loan can help with the process. The co-applicant can be an earning spouse, parents or siblings.

Debt –  The applicant’s debt-to-income ratio is another important factor in getting a car loan. If there are existing debts, it will affect the process of getting another loan as there will be doubts of repayment and defaulting on the loan.

How to improve your eligibility for car loan?

While there are many factors that influence car loan process, there are some steps that can be taken by the applicant to better the eligibility for a car loan.

Decrease existing debts: The applicant must close out on the existing debts on priority. This immediately brightens your chances to get a car loan. Debt management is not an easy task however has negative impact in getting financial assistance. It is important to maintain the debt-to-income ratio at a good level.

Add Co-applicants –  In order to strengthen your car loan application, co-applicant can be added. This co-applicant can be an earning spouse, parents or siblings. Even if the vehicle is not purchased in their name, this option can be exercised.

Improve your credit score –  Ensuring the credit score stays high will help the car loan process. Any outstanding payments, credit card payments or debts need to be cleared. The management of debt shows that you are in control of your finances and helps in expediting the car loan process.

FAQs: Bank of Maharashtra Car Loan Eligibility

(1) What is the age eligibility requirement by Bank of Maharashtra for a car loan?

Bank of Maharashtra has laid out the minimum age of 18 years and maximum of 70 years for car loan.

(2) What documents are required to be submitted?

• Completed application form
• Identity proof
• Address proof
• PAN Card
• Income proof
• Salaried Individuals: Last 2 years ITR, Form 16, Last 3 months salary slips, Last 6 months bank statement
• Non-salaries individuals: Last 2 years ITR, Audited Balance Sheet, Last 12 months bank statement
• Agriculturists who are not filing ITR, an income certificate authorised by Revenue Department officers needs to be submitted.
• Quotation of the vehicle intended for purchase
• Receipt of payment made to the car dealer
• Valuation certificate from the insurer in case of used vehicle not more than 3 years old

(3) What is the minimum income requirement for a businessman or a professional to get a car loan?

A businessman or professional needs to show an income of Rs. 4 lacs per year and submit IT returns for a minimum of 2 years to get a car loan from Bank of Maharashtra.

(4) Does Bank of Maharashtra require security for a car loan?

The vehicle being purchased is hypothecated to Bank of Maharashtra till the loan is completely repaid. The hypothecation acts as security for the loan and there is no requirement of any additional security.